NorthEast Cheese

Cheese prices on the CME Group declined Tuesday with barrels dropping $0.0175 to close at $1.6050, and blocks decreasing $0.0025 to close at $1.6950. Barrel and block prices have declined in the last 2 trading sessions after registering significant price increases last week with barrels up $0.0750 and blocks up $0.0900. Trading has been active with 13 loads of barrels and 15 loads of blocks sold in the last 5 trading sessions. Milk volumes going to cheese plants continue to be strong keeping cheese plants on 6-7 day production schedules. The very active cheese production is expanding inventories, even though demand has been fairly good. Most cheese makers indicate they are pleased with first quarter sales, as those sales are above year ago levels. Exports and mozzarella sales have been especially good, so far this year. Cooperatives Working Together (CWT) has accepted requests for export assistance to sell 7.108 million pounds (3,224 metric tons) of Cheddar, Gouda and Monterey Jack cheese. The product will be delivered April through September 2013. During 2013, CWT has assisted member cooperatives in making export sales of cheese totaling 41.156 million pounds. The latest NASS Cold Storage report shows stocks of natural cheese in cold storage as of February 28, 2013 totaled 1,072.4 million pounds, up 4% compared to one month ago and from one year ago. A majority of the holdings are in the form of American cheese (62.2%) totaling 666.7 million pounds, up 4% from one month ago and 5% higher than one year ago. The next highest natural cheese holdings in cold storage are in the form of Other Natural Cheese, (35.0%) totaling 375.7 million pounds, 5% more than one month ago and 3% more compared to one year ago. Swiss cheese accounts for 2.8% of holdings at 30.0 million pounds, down 1% from one month ago, but 11% more than one year ago. A closer look at the cold storage report showed Eastern stocks of American type cheese totaled 90.6 million pounds, 8.5% more than last month, but 1.6% less than February, 2012. Eastern stocks of Other cheese, which is primarily Italian type cheeses, totaled 26.0 million pounds, 8.8% more than last month and 13.2% more than February 2012. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)